monsoonmartin

My friends,

A few months ago, I posted a review of Five Guys Burgers and Fries and contacted its corporate headquarters to let them know just how much I loved them. I began an email correspondence with Molly Catalano, who is the Public Relations Manager for Five Guys. Soon I had compiled a list of questions for Ms. Catalano and asked if she would consent to an email interview; she delighted me by answering the questions generously and thoroughly.

I am now proud to present these questions (MM) and Molly Catalano’s answers (MC) exclusively and without commercial interruption here on Monsoon’s weblog!

MM: I read that Five Guys has tried various additions to its menu in the past, but ultimately decided to pull these items. Can you discuss a few of these ideas?

MC: The menu originally included a Virginia baked ham sandwich and there is a rumor that they tried a chicken sandwich for one day. This was well before we started franchising and the menu has been the same for at least the past 10-15 years. We get many requests for chili and slaw in the south and sauerkraut in the north, but we will only add to our menu if we know it was the best item possible.

MM: Can you talk a little bit about Five Guys’ interior design? What is the intended effect of having fifty-pound bags of potatoes between the ordering and dining areas?

MC: The basic idea for the décor is to make sure that nothing takes attention away from the food. So it makes sense that we have an open kitchen; our cooking process is the décor! This way, we don’t have to talk about ourselves (hence the articles and quotes from others on the walls) and we don’t even have to tell you what we serve…you see it when you walk in.

Also, with our stacks of potatoes and boxes of peanut oil, along with our open kitchen, we can show guests that we are in fact making everything fresh.

MM: Have you thought about expanding your beverage and treat offerings to include milkshakes, light desserts, and the like?

MC: Besides the chili and sauerkraut, milkshakes are the third most requested item. We love milkshakes, but at this point we don’t think that we could serve the best milkshakes possible without sacrificing quality elsewhere…and we aren’t willing to do that.

MM: It has been reported that Five Guys was pursued for years by individuals who wanted to purchase franchises, but repeatedly turned them down. Can you briefly discuss why Five Guys rejected franchising offers for so long, and why Five Guys ultimately decided to franchise?

MC: The Murrells—especially the father, Jerry—didn’t want to franchise. I don’t know his exact reasoning, but I think things were going well and at the time it didn’t appeal to him. However, the boys were ultimately the ones who decided to franchise and they have done a great job focusing on what is important and not giving in to pressures to change. At the same time, we have learned a lot from our franchisees and I would say that our stores are more consistent now than ever before. Even small changes like our black ceilings and higher quality red countertops came from our franchisees.

MM: Given Five Guys’ unconventional business model, limited menu and untraditional practices, has the company faced any difficulties in attracting investors or selling franchises?

MC: Not at all. In the end, there is a reason behind everything that we do, from the way we cook our fries to the way we change our gloves, and people understand that. We do not advertise for franchisees and franchise inquiries are the highest volume of emails and calls we receive.

MM: I find the construction of your burgers to be artful and ingenious; can you discuss their assembly a bit? For example, why was it decided to put the bacon underneath the patties rather than on top, as is traditionally done?

MC: The assembly, as you may have noticed, is very finely tuned. This, especially, is the area of the business that the “boys” (the Five Guys) perfected in the 15 years before they opened. The assembly is the result of a desire to give optimal flavor combinations while encouraging speed in assembling the burger. With so many toppings, each burger is unique, so we have to have a method to the madness in order to make sure we don’t forget toppings!

MM: The Murrell family’s involvement in the Five Guys business is storied: to what extent is each of the Murrells’ five sons still involved in the business?

MC: All seven (Jerry, Janie, Jim, Matt, Chad, Ben and Tyler) family members are involved in different ways. Ben focuses on franchise development and meets with each franchisee candidate. Chad focuses on training operations. Matt focuses on operations and development, Tyler works with the bakery and Jim focuses on corporate-owned stores.

MM: What is involved, financially and logistically, in securing and setting up a franchised location of Five Guys?

MC: Five Guys sells exclusive territories to franchisees. A franchisee must purchase a territory with a minimum of 5 locations, but many of our franchisees purchase the rights to open much more than that. A franchisee pays a franchise fee for each location and then pays to develop the specific sites once they find them. So a franchisee really does it all: decides where he/she wants to open locations (generally), selects specific sites (with approval from Five Guys) builds out the store, and then opens and runs it. Five Guys provides training and support along the way and throughout their life as a franchisee.

MM: Five Guys reportedly conducts very little, if any, advertising. What is the reasoning behind this strategy, and how successful has it been?

MC: You are correct: Five Guys does not spend ANY national or corporate funds on advertising. We do allow our franchisees to advertise (with approval), so there are a few local items out there. The reasoning is based both on economics and our brand. We want to be known for a great hamburger and great fries and the best form of marketing to do that is word of mouth, so we focus on that. We know that word of mouth is the most effective form of marketing, so we focus on making sure people want to talk about us because they love our burgers and fries!

Additionally, to really compete with others using advertising, you need a lot of money and we believe that we currently get the biggest bang for our buck by providing a very large employee incentive program and by word of mouth. We believe this is successful…or we wouldn’t be here now! Additionally, our new stores open with stronger and stronger sales!

MM: How involved is the Five Guys corporate structure in the day-to-day operations of its franchise locations?

MC: Our franchisees, managers, assistant managers and crew-level employees run the true day-to-day operations. Five Guys Enterprises is involved through our District Manager program. We have District Managers who over see about 15 stores each, and they act as the liaison between franchisees and corporate. They are there to help make our franchisees successful and to protect the Five Guys brand.

MM: Have you considered adding a drive-through element to the Five Guys stores?

MC: We have opened a few locations in buildings that have drive-throughs, but we can only use them as call-ahead pickup windows. This is because it takes about 7-10 minutes for us to prepare an order and that is not fast enough for a drive through.

MM: Your pickles are heaven. How are they made and where are they from?

MC: I agree! Our pickles, like all of our toppings, are specially selected. They are Mount Olive brand kosher pickles. The “boys” (the Five Guys) are fanatical about the quality of our toppings. For example, our current mayo producer is going to stop producing the kind of mayo we use and as a result we are going to privately label mayo for our use because the boys think that this mayo has the right level of creaminess and taste for our burgers.

MM: The interior of the store I visited in Lancaster, PA was lit with fluorescent bulbs. Is this done consistently at your stores? And what other measures has Five Guys taken to minimize the restaurant's impact on the environment?

MC: Many of our stores use fluorescent bulbs (as do our corporate offices, which have the same type of lights). Our peanut oil is currently picked up by a company that uses it for various purposes, but we have researched giving/selling our used peanut oil for use in diesel cars. It is a hard process to do right now because there isn’t a national company that does that, but we have one or two stores that do give their used peanut oil to individuals who use it to power their cars. Finally, we are in the final stages of researching paper fry cups. We currently use Styrofoam, which is not as good for the environment. We hope to roll that out before the end of the year.

MM: Your organization's founder, Jerry Murrell, has been described as being “obsessed” with quality in choosing the ingredients of Five Guys' offerings. Are any of Five Guys' ingredients certified organic or antibiotic-free? If not, does Five Guys have plans to move in this direction in the future?

MC: Five Guys does not have any certified organic or antibiotic-free items. This is not necessarily intentional. Rather, “organic” and “antibiotic-free” are not synonymous with quality. You can have low quality organic items just like you can have low quality non-organic items. Our quality is focused on freshness, lack of preservatives, industry standards of quality (like peanut oil for fries) and then personal family standards. For example, we source whole heads of lettuce rather than that shredded stuff, we put 2 slices of tomatoes on a burger, and we use brand name items like Hebrew National hotdogs, Mount Olive Pickles and high quality bacon that is from a very old and established smoke house.

MM: My readers are anxious to learn what new franchise locations are planned in the southeastern Pennsylvania region: Philadelphia, Bucks, Delaware, Chester, Montgomery, Berks, and Lancaster Counties.

MC: We are opening in all of those areas although it is hard to say when as we don’t know opening dates until a few days before. My suggestion is to visit our website frequently as we add stores to the “coming soon” list every month. [Monsoon’s note: Exeter Commons Shopping Center will feature a Five Guys Burgers & Fries and a Red Robin, in addition to anchor stores Lowe’s, Giant, and Target. Rumors are swirling that a similarly-anchored shopping center planned for the area of the 222/Turnpike interchange in Denver may also attract a Five Guys!]

MM: Thank you for your time!

MC: I apologize for the delay in getting this information to you!

Monsoon